‘I would definitely buy if… ,’: What Elon Musk said on buying Disney shares

NEW DELHI: Elon Musk CEO of Tesla and owner of X (previously known as Twitter) expressed his intent to purchase shares of Disney (DIS) if activist investor Nelson Peltz secures a seat on the media and entertainment giant’s board. Musk’s statement came on Wednesday, endorsing Peltz’s potential influence on Disney’s board. “Nelson Peltz should definitely be on the Disney board! He would help reform the company, improve the quality of product and generally serve in the best interests of shareholders, as he has done at many other companies,” Musk conveyed via X platform.He further added, “This would significantly improve Disney’s share price.”

Musk’s remarks were prompted by a post from American hedge fund manager Bill Ackman on X, expressing concerns over alleged leaks to the media about Disney’s proxy contest results against Nelson Peltz. Ackman emphasised the inappropriate nature of such actions, stating they could unfairly influence the voting outcome.
Reuters reported on Tuesday that Disney has garnered adequate shareholder support to overcome a board challenge from Peltz’s Trian Fund Management. The vote count allegedly showed Disney’s board members maintaining a comfortable lead over Trian’s nominees, including Peltz himself and former Disney CFO Jay Rasulo.
In response to the circulating rumors, Ackman urged DIS shareholders to cast their votes in favor of Peltz’s election to the board. He cautioned against potential manipulation of shareholder behavior through early election result leaks, which could favor the incumbent board. “Based on my knowledge of Nelson’s capabilities and the dirty tricks implemented by the company and its advisors, I strongly recommend that shareholders vote for Nelson Peltz for the Disney board,” Ackman asserted.
Musk highlighted that Peltz’s election to the board would make Disney stock more attractive for investment. “While I don’t own any Disney shares today, I would definitely buy their shares if Nelson were elected to the board. His track record is excellent,” Musk stated, signaling his confidence in Peltz’s potential impact on Disney’s future direction.